Conference abbott::cruise_travel

From The Wall Street Journal, Thursday, August 18,1988

CARNIVAL TO BUY CRUISE BUSINESS OF GOTAAS-LARSON
    by Charles McCoy, Staff Reporter of The Wall Street Journal

MIAMI - Carnival Cruise Lines said it agreed to pay $260 million 
for the cruise ship business of Gotaas-Larsen Shipping Corp., 
London.
    Carnival says it currently carries more passengers than any 
other line in the booming cruise ship industry.  It has the 
third-largest number of berths, according to industry estimates.  
Gotaas-Larsen owns interests that represent roughly one-third 
of what is soon to become the industry's second-largest entity, 
in terms of berths.  Analysts said acquiring that stake could 
place Carnival in position to dominate the cruise business for 
years to come.
    The move underscores the wave of consolidations and mergers 
in the cruise line industry in recent months.  In July, for 
example, P&O Line acquired Sitmar Cruises, giving P&O 11,202 
berths, more than any other operator.  The trend reflects cruise 
companies' belief that size is the best defense against heavy 
competition and escalating advertising expenditures, analysts 
said.
    "We'll see more of these deals," said Stanley Buchin, a 
cruise industry consultant based in Lexington, Mass.  "in two or 
three years, the business will be dominated by a few very large 
players."
    Gotaas-Larsen owns 33.3% of Royal Caribbean Cruise Lines and 
51% of Admiral Cruise Lines.  In March, those companies agreed to 
merge in a deal that would create a cruise operator with about 
9,034 berths, more than Carnivals 8,448 berths.  By buying 
Gotaas-Larsen's stake, Carnival could wind up with 36.2% of the 
combined entity.
    In American Stock Exchange composite trading yesterday, 
Carnival's shares closed at $12.75, up $1.125.
    Mickey Arison, Carnival's president, said the acquisition 
would give it the single largest stake in the Royal 
Caribbean-Admiral combination.  The other shareholders are two 
Norwegian shipping families and three private companies, none of 
which were identified.  Mr. Arison said Carnival views the stake 
as "a long-term investment," but he wasn't specific about how 
Carnival hopes to influence the combined entity.
    Some analysts speculated that Carnival's eventual aim is to 
take over the entire Royal Caribbean-Admiral combination.  Mr. 
Arison wouldn't comment on that, but said, "If any of the other 
parties are interested in selling, we're interested in buying."
    The cruise companies' push for more size has been fueled by 
both growing demand and growing costs.  Mr. Buchin said industry 
revenues have been increasing at about 8% to 10% annually in 
recent years, and are expected to total about $7 billion this 
year.  However, advertising expenses exploded to about $200 
million in 1987 and could reach about %400 million a year by 
1992, he said.
    "The cruise industry is coming out of its adolescence," said 
Ron Zeller, a Miami-based consultant.  "It is realizing that size 
and scale means profit."
    Much of the growth comes from those who have discovered that 
cruises aren't only for retirees.  "The two-income, no-kids class 
of yuppie has discovered that floating away toward an island is a 
unique and highly satisfactory kind of vacation," said John 
Leeper, a transportation consultant in Alexandria, Va.

    According to my travel agent, Sitmar Cruise Lines was bought by
    Princess Cruises just a few weeks ago.  It seems that in October
    of 87' the owner of Sitmar died.  The line was inherited by his
    family which promptly started cutting corners and skimping on the
    service, of which I witnessed first hand on my April 88' cruise.
    I found out sometime into the cruise that the salaries of almost
    all Sitmar employees had been reduced, in some cases by 50%.  So
    no wonder they weren't the friendliest and service minded crew we
    ever met.
    
    She expects that Princess Cruise Lines will be a positive influence
    on Sitmar and things should start shaping up rather quickly.  This
    is certainly good news.
    

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BOOVX1::B_ALLEN                                       6 lines  25-AUG-1988 22:48
                               -< SHIP TRANSFER >-
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    NEWS
    THE ROYAL VIKING STAR IS BEING TRANSFERED TO NCL IN FEBUARY, IT
    WILL BE REURBISHED, RENAMED AND GO INTO SERVICE WITH NCL.
    ROYAL VIKING AND NCL ARE BOTH OWNED BY KLOSTER TRAVEL BASED IN SAN
    FRANCISCO.
    
    

From The Wall Street Journal, Friday, January 31,1989

Help Wanted: Men To Dance on Board
    by Jonathan Dahl

THE CRUISE industry has found a way to make cruising more attractive for some
women: male escorts.

More cruise lines are placing senior men on board to serve as "hosts" by
dancing and socializing with unescorted ladies.  Cruises often have far more
widows than widowers and "this gives those ladies someone to dance with," says
a spokesman for Royal Viking Line in Coral Gables, Fla.

Cruise lines say the hosts wear name tags and are required to socialize with
all single women; they are not permitted to pair off or become romantically
involved with anyone.  "The ladies are to be treated equally," says a
spokeswoman for Royal Cruise Line in San Francisco.  "And believe me, they
notice if there is any favoritism."

For their efforts, the hosts get to go on the cruise free and are given a $100
to $200 bar credit-to pay for drinks they buy for ladies.  But it's not easy to
get the job.  Hundreds apply each year, and recommendations from travel agents
are required.

"The guys look like something out of central casting," says Gene Malott, editor
of the Mature Traveler newsletter.  "They're all very suave, with gray-not
silver-hair and James Bond grins on their faces."